Taiwan Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 31-Oct-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : CM2223
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Taiwan Construction Market Overview
The Taiwan Construction Market size was valued at USD 56.55 billion in 2023, and is predicted to reach USD 74.35 billion by 2030, at a CAGR of 3.4% from 2024 to 2030.
The construction market, also referred to as infrastructure market, plays a vital role in the economy by managing the entire lifecycle of various physical structures, including infrastructure, buildings, and facilities. This industry encompasses a wide range of projects, from residential, commercial, and industrial developments to civil engineering and institutional infrastructure ventures.
Effective collaboration among numerous stakeholders—such as architects, engineers, contractors, suppliers, developers, investors, and government agencies—is essential for its operations. Positioned for growth, the industry is being driven by a growing emphasis on environmentally sustainable practices, including the use of green building materials and energy-efficient designs. Additionally, factors such as rising per capita income in emerging economies and low-interest rates in developed nations are expected to further stimulate the expansion of the market.
Government-Funded Infrastructure Projects Drives the Market Growth
Taiwan's construction market is currently expanding rapidly, driven by the government's increasing focus on infrastructure development, particularly railway projects. In January 2024, the Taiwanese government, through the Ministry of Transportation and Communications, approved the building of the Blue Line, the second metro line in Taiwan.
This 24 km line, with 20 stations, will connect the east and west of Taichung and is expected to be operational in around 10 years, with an estimated cost of USD 5.05 billion. The government allocated USD 2.1 billion, while the Taichung authorities will contribute USD 2.93 billion. The Taiwanese government is also involved in other infrastructure market metro projects, such as the Taipei Circular Line, where an Alstom-led consortium, including the Taiwanese engineering and contracting services company CTCI, contracted to deliver an integrated metro system.
Impact of Low Inflation Rates Boosts the Market Growth
Reduced inflation rates play a crucial role in strengthening consumer preference and purchasing power, potentially stimulate the demand for new infrastructure projects, including residential and commercial buildings. According to data from global finance sources, the inflation rate in Taiwan for the year 2024 was recorded at a low of 1.88%, significantly lower compared to other Asian countries such as Australia and India, that had inflation rates of 3.53% and 4.56%, respectively, for the same period. This favourable economic condition can drive the growth and development of the construction market, contributing to Taiwan's overall economic progress.
Regulatory Complexities in Market Hinder Growth
Navigating regulatory complexities poses a significant challenge in the construction market. Infrastructure projects often encounter hurdles due to the intricate network of government regulations and permitting procedures. Infrastructure initiatives require numerous permits and approvals from governmental bodies at local, regional, and national levels.
These mandates encompass adherence to zoning regulations, environmental assessments, compliance with building codes, safety standards, and various other regulatory requirements. Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among different jurisdictions can significantly prolong project timelines and inflate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments in the market.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The construction market in Taiwan is undergoing a significant transformation with the integration of digitalization and the adoption of Building Information Modeling (BIM). Advanced technologies such as BIM are enhancing efficiency, accuracy, and collaboration across diverse projects. BIM, a sophisticated 3D modeling tool, empowers stakeholders to generate and manage digital representations of structures and infrastructure, facilitating improved coordination and communication among project teams.
For instance, in September 2022, the National Institute of Building Sciences (NIBS) launched the Taiwan National Building Information Management (BIM) Program. This initiative aims to revolutionize the market, achieving unprecedented levels of industrial efficiency through digitalization. By addressing the inadequacy of digitalization within the Taiwan infrastructure sector, the program seeks to streamline lifecycle work processes, enhancing efficiency, cost-effectiveness, resilience, and safety for infrastructure and maintenance projects.
Competitive Landscape
The market players operating in the Taiwan construction industry include Chung-Lu Construction Co., Ltd., RSEA Engineering Corporation, Chong Hong Construction, Ruentex Construction & Development Co., Ltd., Farglory Group, Continental Engineering Corp., Radium Life Tech Co., Ltd., Forte Construction Co., Ltd., Kung Sing Engineering Corporation, Kung Long Batteries Industrial Co., Ltd., and others.
Taiwan Construction Market Key Segments
By Type
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Renovation
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New Construction
By Sector
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Real Estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key players
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Chung-Lu Construction Co., Ltd.
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RSEA Engineering Corporation
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Chong Hong Construction
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Ruentex Construction & Development Co., Ltd.
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Farglory Group
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Continental Engineering Corp.
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Radium Life Tech Co., Ltd.
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Forte Construction Co., Ltd.
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Kung Sing Engineering Corporation
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Kung Long Batteries Industrial Co., Ltd.
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2023 |
USD 56.55 Billion |
|
Revenue Forecast in 2030 |
USD 74.35 Billion |
|
Growth Rate |
CAGR of 3.4% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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